Hormuz Disruptions Threaten Oil Market Recovery

Saudi Aramco CEO Amin Nasser warned that disruption to oil exports via the Strait of Hormuz may delay the market's return to normal until 2027. The situation has already caused a significant loss of around 100 million barrels of oil per week, with only two to five vessels crossing the strait daily versus the usual 70.

Nasser stated that even if the strait were to reopen today, it would take months for the market to rebalance. The current supply disruptions are threatening to delay the market's recovery, and Nasser predicted a very robust return to demand growth once normal shipping and trade resume.

The Strait of Hormuz is critical for global oil supplies, and its closure has sent energy prices surging. Aramco has ramped up exports via the East-West pipeline to the Red Sea port of Yanbu to help sustain around 60-70% of its crude export volumes.